Below is the verbatim transcript of VK Sharma's interview on CNBC-TV18.

Q: After Tuesday's dip, how are you going to play the Nifty from here?

A: The movement of rupee on Tuesday will ensure that market opens in green but that does not change the overall sentiment in the market. The traders as well as the investors would be willing to lighten their commitments in case the initial gains gather some momentum.

We would be selling both the bank stocks and other stocks in case we see some rise. In the Nifty per se, although it closed at 5542 and Calls have been written at a level of even 5400, where the Puts have been written.

This is a market which will not fall more than 100 points from these levels whereas the support is hardly 70-80 points from these levels. So, we will be sellers at rallies and in case the market breaks down below the level of 5480 then further buying of Puts will be in order.

Q: You were talking about the pressure that we saw in the banking space. How would you approach ICICI Bank and IndusInd Bank now?

A: Although positions were not built on the shorter side in ICICI Bank, the stock is near its support and did go down almost 4 percent, but the Bank Nifty is weak. So, this is just welling out around its time at the current levels. Should it break below Rs 860, my suggestion is to buy the 860 Put.

As markets will open slightly better the Put of 860 which quoted at around Rs 34 yesterday would be available at around Rs 28 in the morning. That can be bought at 860 Put with a clear stop loss at Rs 20 and hope to sell this at around Rs 45. IndusInd Bank on the contrary is a bank which is slightly weaker than ICICI Bank.

Positions were built on the short side at around 1 percent. Stock went down more by almost 8 percent. There I am suggesting buying 360 Put at around Rs 16. Keep a tight stop loss at Rs 12 and hope to sell this at Rs 25. There the higher interest rate costs are going to catch up as the deposits come up for renewal.